World News for Students of English

21-10-2025 07:00

IKEA’s annual sales dropped for the second year in a row as the furniture giant continued lowering prices to attract customers struggling with high living costs.

The company cut prices by around 10% over the past two years after previously raising them during the pandemic.

Despite a 1% decline in global sales to 44.6 billion euros, the number of products sold and store visits increased, showing that shoppers are buying more low-cost items. CEO Jon Abrahamsson Ring said IKEA can focus on long-term decisions because it is not listed on the stock exchange and wants to support consumers whose confidence has weakened.

In the US, prices rose on some items due to tariffs, though IKEA is trying to absorb the extra costs. Ingka Group, IKEA’s largest franchisee, also reported a 1.6% sales decline but remains cautiously optimistic about future recovery.

Difficult words: absorb (to take in or handle something difficult), franchise (a business that has permission to use another company’s name, products, and system), cautiously (carefully and without taking big risks).

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